Commercial Property Values Rise

UK commercial property values rose 0.1 percent in September, unchanged from August, buoyed by strong demand for central London offices and retail property against a backcloth of wider market turmoil, data showed on Friday.

Investment Property Databank (IPD) said property values had recovered by 17.8 percent in the past two years, having fallen by about 45 percent during the global financial meltdown.

Total returns across all property classes -- office, retail and industrial -- was 0.6 percent for September, unchanged from August and almost entirely driven by rental income, IPD said.

"Occupier demand remained strong across the London office market," IPD's UK and Ireland Managing Director, Phil Tily, said in a statement.

"While there was mild yield compression, growth was predominantly off the back of continuing rental value growth, which is encouraging given the levels of uncertainty in the wider economy," Tily said.

Income returns for September was 0.6 percent, with 0.5 percent from offices, 0.6 percent from industrial, and 0.5 percent from retail, IPD said.